Unit 3: Negotiation Types Flashcards
What are the formal 4 typologies of negotiation?
- According to the hierarchical level
- According to the number of parties involved
- According to representativeness
- According to formality
Between who is a vertical negotiation?
Between subjects who belong to different hierarchical levels
Between who is a horizontal negotiation?
Between subjects from the same hierarchical levels
What is a bilateral negotiation?
A negotiation between two parties
What is a multilateral negotiation?
A negotiation between more than two parties
What often happens in multilateral negotiations?
Two parties find an agreement and try to accomodate the rest
What is interpersonal negotiation?
Here the negotiator represents themselves
What is representative negotiation?
Here the subjects represent groups, organizations, firms
What is formal negotiation?
Here procedure is followed
What is informal negotiation?
Here there is no previous procedure
What are the 5 different attitudes for negotiating?
- Avoid
- Compete
- Accommodate
- Compromise
- Collaborate
Describe the behavior of someone with an ‘avoid’ attitude
Does not want to negotiate, difficult to get to the table and keep there
What is the outcome when you have an ‘avoid’ attitude
I lose, You lose
Describe the behavior of someone with a ‘compete’ attitude
Wants to have all their needs met, does not care about yours. Does not care about relationships ot ongoing business
What is the outcome when you have a ‘compete’ attitude
I Win, You lose
Describe the behavior of someone with an ‘accomodate’ attitude
It is not that important to them, they are happy for the other to have it their way
What is the outcome when you have an ‘accomodate’ attitude?
I lose, You win
Describe the behavior of someone with a ‘compromise’ attitude
There are enough benefits to reach an agreement but compromising is needed from both
What is the outcome when you have a ‘compromise’ attitude?
I win some/ You win some
Describe the behavior of someone with a ‘collaborate’ attitude
Is willing to share risk and reward
What is the outcome when you have a ‘collaborate’ attitude?
I win, You win
What is the most important difference between compromise and collaborate?
Compromise does not seek the other party’s win but does not compete it either
What are the aspects of a distributive/competitive negotiation? (4)
- Zero-sum approach (my win is your loss)
- Both parties want to have the most, and want to improve their own position
- Focus on differences and positions
- Negotiators keep in mind their BATNA
What does BATNA stand for?
Best alternative to a negotiation agreement
What is the resistance point of a buyer?
The highest price that you are willing to buy for
What is the resistance point of a seller?
The lowest price that you are willing to sell for
What does ZOPA stand for?
Zone of possible agreement
TRUE or FALSE
BATNA and target point are the same
FALSE
They are not always the same because you set the best alternative according to the current situation and information you have
What are the features of an integrative/collaborative negotiation? (5)
- Negotiators focus on affinities and not on differences
- Approach based on needs and interests
- Commitment in order to grant all part’s needs
- Open exchange of information and ideas
- Objective performance indicators are proposed
What are 5 behaviors/attitudes for an integrative process?
- Participants manage the process to make sure all parties stay involved
- Understand the real needs of the negotiator
- Create an open conversation so there is an efficient exchange of information
- Search for solutions that meet the needs and objectives of both sides
- Highlight the affinities between the parties and reduce differences
What does creating a free flow of information mean?
This means that both parties know and share their options
What does a negotiator do who wants to search for solutions that meet the needs of both sides? (2)
- Strive to ensure that the other’s goals do not take away from their own achievements
- Try to prevent the other from reaching their goals because of as strong desire to win
How are results measured in an integrative framework?
By the degree ti which the goals of both negotiators are met
Describe competitive negotiation in 1 word
Positions
Describe collaborative negotiation in 1 word
Interests
